Public housing asset limit: Do I need to declare my saving insurance?
Insurance with Savings or Investment Must Be Declared In "Hong Kong Public Housing Income and Assets Declaration"
In the public housing “Income and Assets Declaration,” you need to provide details on your “income” and “assets.” Life insurance policies with savings components are classified under “assets” as “investments,” while any dividends from the policy count as “income.”
When submitting your application, remember to complete the “Income and Assets Declaration (For Insurance Plan Holders)” (Form RCSU2-011E) .
When the Housing Department requests your “Income and Assets Declaration,” fill out the “Well-off Tenants Policy” form ( Sample Form HD1119E ), and be sure to include the cash value and dividends from your policies.
If you have any questions, it’s best to check with the Housing Authority or your local estate office. Keep in mind, underreporting or hiding income and assets is illegal, could lead to prosecution, and might affect your public housing application or tenancy status.
When Calculating Total “Assets,” These Insurance-Related Items Can Be Deducted
- For family members in the public housing household who have passed away, amounts received by other family members
- Lump-sum insurance compensation
- Statutory or non-statutory compensation
- Other special financial assistance
- Critical illness insurance compensation received by family members in the household
When to Declare Hong Kong Public Housing Income and Assets Declaration?
Generally speaking, public housing applicants or tenants need to make an “income and assets declaration” at the following times:
- When submitting a public housing application
- For regular public housing tenants who have lived there for 10 years, declarations are required every 2 years
- For tenants approved under the “Grant of New Tenancy Policy” or “Housing Tenancy Management Policies,” regardless of tenancy duration, declarations are required every 2 years (first declaration or if less than 2 years)
Undeclared Insurance in Public Housing Cases
After waiting 4 years for public housing, Mrs. Li was scheduled to meet with Housing Department staff in early 2016 for an assets review. Typically, applications that pass this review proceed to unit allocation.
However, during the meeting, the staff discovered that Mrs. Li and her husband had purchased savings-type life and accident insurance as early as 1988, but she hadn’t declared it. Even though including the policy’s cash value and the couple’s other assets still met the public housing income and asset limits, the Housing Department canceled their application for providing false information and warned them of potential prosecution.
Mrs. Li explained that when filling out the form, she saw “savings insurance” listed under the “investments” section but thought life and accident insurance didn’t need to be declared.
In early 2022, a female netizen posted on the “Baby Kingdom” forum, saying she had been waiting for public housing for 6 years. Recently, during a review meeting with a Housing Department officer, she learned she had undeclared insurance, as she “didn’t know it needed to be reported at the time of application.”
She later submitted the policy documents as requested by the Housing Department, but if the policy’s cash value was added, her total assets at the time of application slightly exceeded the limit set by the department that year. She worried her application would be canceled and said she was mentally prepared to start waiting again.
Does Buying Insurance Policies Help Public Housing Applications?
he above discusses how buying insurance (savings/investment-type policies) might lead to exceeding income and asset limits and hinder public housing applications. But some opinions suggest that buying insurance can actually help with applications. What’s the reasoning behind this?
If you purchase long-term savings/investment policies, early surrender often incurs hefty fees or penalties, making the policy value lower than the total premiums paid, which can help keep assets down. However, if you suddenly need emergency funds and surrender early, it could result in significant losses. So, buying savings policies just to lower assets is like cutting off your nose to spite your face—it might not be worth it.
Additionally, the cash value of the policy will gradually increase over time. If after 5 to 10 years the policy starts growing, it could still cause assets to exceed limits.
Even if you eventually get housed, exceeding limits later means paying 1.5 or double “well-off tenant” rent, which isn’t a long-term solution. Plus, if you have some financial means, it’s better to leave public housing resources for those who truly need them.
Low-Income Families Need Life Insurance More
Many low-income families, limited by their tight budgets and lack of access to financial knowledge, might think insurance is just for the wealthy and that they have no right or need to buy it. In reality, families with fewer savings need insurance even more for their breadwinners, because if something happens, not only will they face future living expenses, but even funeral costs could wipe them out, plunging them into immediate financial distress!
Actually, by choosing non-savings type life insurance, monthly premiums can be as low as the cost of a meal, providing your family with millions in life coverage. It’s absolutely an affordable protection that every low-income family can have.
Just Need Protection? Choose Bowtie Term Life!
If you need life coverage but don’t want policy value fluctuations to affect your public housing application or eligibility, consider Bowtie Term Life, as it has absolutely no savings or investment components and doesn’t count as “assets” or “investments” in public housing income and asset declarations. This product is straightforward: it provides a lump-sum payout to beneficiaries upon the insured’s death. Its features include:
- Pure protection, with no savings element
- Up to 40 times higher coverage than typical savings life products at the same premium*
- Monthly premium as low as $38 per $1 million coverage
* Based on standard premium for a 35-year-old non-smoking female with $1 million coverage; Term life insurance: Data from market term life products (20-year term) standard premiums as of July 1, 2020
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| Coverage Scope | Death Benefit (100% of Sum Insured) |
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| Minimum Insured Amount | HK$200,000 |
| Maximum Insured Amount | HK$20,000,000 (Existing customers*)
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| Renewable Up To | Age 100 |
- Product Type: Life Insurance — If the insured passes away, we will make a lump-sum payment of the death benefit to the policy beneficiary
- Issue Age: 18 to 65 years old
- Coverage Period: 1 year – Guaranteed annual renewal up to age 100
- Waiting Period: Not applicable
- Renewal: No re-underwriting at renewal, and no additional premium loading or individual exclusions due to changes in the insured’s health; The Company reserves the right to revise policy terms and conditions at renewal, including the premium schedule in effect at that time
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- Tax Deduction: Not applicable
Premium Calculation Table (Excel) (Suitable for computer users to download)
